What You Need to Know
- The aggregate amount of LPL’s outstanding debt, though, “would be substantially unchanged as a result of the transaction,” the firm said Thursday.
- LPL Holdings anticipates the transaction will be wrapped up by mid-March.
- The move comes three months after LPL agreed to buy Waddell & Reed’s wealth management business for $300 million.
LPL Holdings, a unit of LPL Financial, says it will expand its revolving credit facility from $750 million to $1 billion and refinance its existing $900 million senior unsecured notes due in 2025.
As part of these moves, LPL Holdings plans to offer about $900 million in senior unsecured notes with maturities dependent on market conditions.
The aggregate amount of LPL’s outstanding debt, though, “would be substantially unchanged as a result of the transaction,” the firm said Thursday.
This is because “LPL Holdings intends to use the net proceeds from the senior notes offering, together with cash available for corporate use, to redeem its existing $900 million of senior unsecured notes due 2025 … and to pay fees and expenses related to the senior notes offering and the credit agreement amendment,” it explained.
LPL Holdings anticipates the transaction will be wrapped up by mid-March. The parent firm works with some 17,300 independent advisors.
LPL on Growth Tear
The move comes three months after LPL Financial agreed to buy Waddell & Reed’s wealth management business, which had 921 independent advisors and $63 billion of assets under administration in September 2020, from Macquarie Asset Management for $300 million.
As part of the deal, LPL and Macquarie plan to form a long-term arrangement, with Australia-based Macquarie becoming a key asset management partner of the independent broker-dealer.